REPORT ON Investment Sustainability and Impact

1 REPORT ONInvestment Sustainability and Impact Fidelity Asset ManagementESG Investing Team REPORT on Investment Sustainability and Impact | 2 Fidelity s ESG Investing Team is proud to present our REPORT on Investment Sustainability and Impact . As stewards of our customers money, we believe that integrating a robust environmental, social, and governance (ESG) investing component into our research and portfolio management processes enhances our ability to identify superior Investment opportunities. We focus intensely on the Investment merits of all potential portfolio holdings, and consider all relevant aspects of the fundamental research process, including ESG factors. At the same time, we are sensitive to some of our customers desires that their investments reflect their personal beliefs.

2 Therefore, for these customers, we offer thematic funds, Investment solutions, and planning tools that incorporate sustainable investing considerations. Our expectations for the companies we invest in are evolving as we encourage a greater focus on, and disclosure of, issues related to ESG risks and opportunities. We have similar expectations for our own evolution toward improved corporate social responsibility. We know we have more to do, though we have made strides in our dedication to Sustainability , our associate experience, and our focus on diversity and inclusion. Corporations are responding to social and political issues in a way they haven t before, showing increasing accountability to society more broadly to protect against reputational fallout, and to attract the next generation of socially minded talent.

3 As we examine companies efforts to attract diverse workforces, detailed disclosures allow us to track progress over time, see which companies stand out, and identify practices that work. COURTNEY BEDELL, ESG ANALYST CYCLICALS AND ENERGY REPORT on Investment Sustainability and Impact | 3 Table of ContentsReport on Investment Sustainability and Impact | 3 Foreword by Pam Holding, Co-Head of Equity and Head of Sustainable InvestingWhat Is Sustainable Investing?Integrating ESG into Fidelity s Investment ProcessESG Stewardship in Action: Engage, Vote, PromotePerspectives on Key ESG Factors Governance Board Leadership Workplace Diversity and Inclusion Climate RiskEnvironmental Sustainability at Fidelity: Investing in Our Future Fidelity ESG Fund Spotlights Women s Leadership Fund Water Sustainability FundWhat s Next?

4 4681620 262731 REPORT on Investment Sustainability and Impact | 4 Fidelity s ESG Investing Team presents our first REPORT on Investment Sustainability and Impact at a challenging time. Nations around the world are wrestling with issues of social justice and equality alongside the growing tragedy of lives lost and economic hardship due to COVID-19. The global pandemic has upended the way we work and interact with others. It has also put a spotlight on the need to evolve how financial services firms address heightened customer expectations for corporate stewardship in the areas of Investment research and Investment product economic disruption, social unrest, and global health crisis over the past year have moved many of us to reflect on our priorities and the values most important to us.

5 Many corporations have accelerated their Sustainability efforts and sharpened their focus on critical matters such as employee and management diversity, corporate governance, sustainable product design, and supply chain management . Perhaps now more than ever, investors want to ensure their investments are aligned with their core values and that the companies they own put employees and communities at the forefront of corporate stewardship. Pam HoldingCo-Head of Equity and Head of Sustainable Investing 2017 Fidelity Sustainable Equity Index Fund Launched2017 Fidelity Sustainable International Equity Index Fund Launched 2011 Governance and Forensic Accounting Research Team Formed 2010 Corporate Enterprise Environmental Sustainability Office Established 2017 Centralized ESG Research Team Formed 2018 Fidelity Stewardship Principles ReleasedReport on Investment Sustainability and Impact | 4 FOREWORDR eport on Investment Sustainability and Impact | 5 While this may be our first published REPORT outlining our sustainable investing efforts, ESG considerations have been part of our Investment stewardship and research process for many years.

6 Since its founding, Fidelity has sought to build the broadest mosaic possible to identify Investment opportunities and risks across all asset classes, Investment styles, and geographies. We believe the operating behaviors, principles, and outcomes associated with ESG initiatives are integral to a company s long-term economic success, and thus should be incorporated into the Investment research process. Therefore, ESG research at Fidelity is guided by the same intellectual rigor and proprietary analysis that shape all of our active management am honored to lead Fidelity s sustainable investing efforts and proud to represent our ESG Investing Team s commitment to deep, fundamental analysis of ESG issues and development of a wide range of sustainable products to meet our customers Fidelity Sustainable Bond Index Fund Launched2019 ESG Fund REPORT Card Launched2020 Fidelity Water Sustainability Fund Launched2019 Fidelity Women s Leadership Fund Launched2020 Fidelity Proprietary ESG Ratings LaunchedReport on Investment Sustainability and Impact | 5 REPORT on Investment Sustainability and Impact | 6 What Is Sustainable Investing?

7 REPORT on Investment Sustainability and Impact | 7 What is sustainable investing?We define sustainable investing as a discipline that integrates ESG factors into Investment research and decision-making. Evaluating the ESG factors that are material to a given industry and company can help assess an Investment s Sustainability . Generally, sustainable investing can mean selecting companies that limit the negative Impact their operations and products have on the environment; focus on more equitable relationships among and between their customers, employees, suppliers, and communities they operate in; and exhibit accountable and transparent governance with diverse and independent boards, compensation incentives that align with shareholders, and sound capital allocation Fidelity, we believe that robust ESG practices can be critical to an Investment s long-term success.

8 Therefore, where appropriate and aligned with a fund s Investment objectives, we apply an ESG perspective directly to the products we offer our clients. More broadly, we have incorporated ESG factors into our bottom-up fundamental research across all asset classes and Investment disciplines. Our deep, fundamental Investment research process includes ESG analysis to help us better identify risks and superior Investment opportunities. For example, examining environmental factors can reveal which companies are responsive to consumer demand for sustainable practices. A focus on social themes can identify businesses that demonstrate a commitment to a diverse and inclusive workplace. And attention to governance can uncover which companies are committed to diverse board composition and shareholder-friendly : Sustainability & resource efficiency Climate change Greenhouse gas emissions Natural resource depletion Waste & pollution Energy efficiency Alternative energySocial: More equitable societies and respect for human rights Labor standards, health, and safety Diversity, employee engagement Supply chain management Local community Impact Data protection/PrivacyGovernance.

9 Accountable governance and transparent operations Executive incentive structure Board diversity and independence Transparency and disclosure Lobbying/Political contributions Bribery and corruption Business ethicsCompiled from the United Nations Principles for Responsible Investment (UNPRI), CFA Institute, and the Sustainability Accounting Standards Board (SASB). REPORT on Investment Sustainability and Impact | 8 Integrating ESG into Fidelity s Investment ProcessReport on Investment Sustainability and Impact | 9 Integrating ESG into Fidelity s Investment ProcessIn our role as a global asset management firm, we remain focused on the same proprietary research and investing principles that have always guided us. We consider all relevant components of the Investment research process and carefully evaluate the Investment merits of all potential portfolio holdings.

10 With more than $ trillion1 in assets under management , Fidelity s depth and breadth of research coverage mean we can thoroughly assess a company s economic and Investment potential. Since its founding, Fidelity s Investment research organization has been based on a culture of individual accountability and a meritocracy of Investment ideas. Consistent with this approach, portfolio managers are not mandated to incorporate ESG into their research process; however, we believe that ESG factors represent a set of corporate attributes that can be financially material and thus should not be ignored. When properly contextualized, ESG considerations can help portfolio managers and analysts evaluate and expand their Investment theses. Through the lens of a skilled active manager, the analysis of ESG factors can provide an expanded view into the durability of a company s competitive advantage and earnings growth, as well as potential business model risks.